A company purchases an Alberta industrial property and later discovers that the previous owner's underground fuel storage tank has leaked, contaminating the soil and groundwater. Under the Environmental Protection and Enhancement Act (EPEA), who bears responsibility?
Correct Answer
A) The current owner may be liable for remediation despite not causing it, with possible recourse against the previous owner
Under EPEA, Alberta's environmental liability framework is broad. The current owner can be held responsible for remediation of contaminated property even if they did not cause the contamination. This 'owner liability' principle makes pre-purchase environmental due diligence (Phase I and Phase II ESAs) critical for commercial property acquisitions. The current owner may have legal recourse against the party who caused the contamination.
Why This Is the Correct Answer
Under EPEA's broad liability provisions (Part 5), Alberta designates multiple 'responsible persons' for contaminated sites, including the current owner. Even innocent purchasers who did not cause contamination can be ordered to remediate. The owner may pursue cost recovery against the previous owner who caused the contamination, but the remediation obligation falls to them first.
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